Publicly traded Agiliti, a provider of medical technology management services, has agreed to be taken private by Thomas H. Lee Partners (THL) at an enterprise value of approximately $2.5 billion.
Agiliti (NYSE: AGTI) is a provider of medical equipment services including rental, maintenance, repair, and asset management to hospitals, surgery centers, and health clinics. The company owns and deploys more than 300,000 medical devices across the country to more than 10,000 customers.
Agiliti’s 2023 Adjusted EBITDA is estimated to be $265 million. Based on the $2.5 billion enterprise valuation this equals a 9.4x valuation multiple. Agiliti, headquartered near Minneapolis in Eden Prairie, Minnesota, was founded in 1939 as Universal Hospital Services and changed its name to Agiliti in December 2018.
Agiliti went public in April 2021 following its acquisition in January 2019 by THL and Federal Street Acquisition Corp., a special purpose acquisition company, at a valuation of $1.7 billion – 11.6x Agiliti’s forecasted 2018 Adjusted EBITDA of $150 million. THL and Federal Street acquired Agiliti from Irving Place Capital (formerly Bear Stearns Merchant Banking) which had purchased the company (then operating as Universal Hospital Services) in April 2007 for $712 million from J. W. Childs and The Halifax Group.
“Agiliti serves a critical role in sustaining our national healthcare infrastructure, and our dedicated team has led the way to our substantial growth and evolution over the last decade,” said Tom Leonard, CEO of Agiliti. “We are pleased to expand our five-year partnership with THL in a transaction that provides immediate value and liquidity to our shareholders, while lifting certain overhangs that had limited our performance in the public market since the time of our IPO.”
THL was founded in 1974 and is one of the oldest private equity investment firms in the United States. Industries of interest include financial services, healthcare, and technology & business solutions. Since its founding, Boston-based THL has raised over $35 billion of equity capital, acquired over 170 portfolio companies, and completed over 600 add-on acquisitions. THL closed its most recent flagship fund, Thomas H. Lee Equity Fund IX LP, in October 2021 with $5.6 billion in committed capital.
Centerview Partners is the financial advisor on this transaction to the special committee of Agiliti’s board of directors and Goldman Sachs is the financial advisor to THL.
The transaction is expected to close in the first half of 2024.
© 2024 Private Equity Professional | February 28, 2024
